Between March 28 and April 8, including the extended Easter weekend and Qingming Festival, a whopping 3.6 million Hong Kong residents visited the land control point, compared to around 860,000 mainland residents who visited the city. I headed north via the route.
Other cities in the Greater Bay Area have become popular playgrounds for Hong Kongers, much like the influx of mainlanders to Hong Kong after the war. Individual visit system It was released 21 years ago.
The economic impact of this reversed travel pattern will be felt across the Greater Bay Area. Last year, Shenzhen authorities announced that “social consumption and retail spending” increased by 7.8% and gross domestic product (GDP) increased by 6%, outpacing Hong Kong and other first-tier cities on the mainland.
On March 30th, Hong Kong residents traveling to Guangdong province for the Easter holiday toured Shenzhen.Photo: Ik Young Man
In comparison, the number of tourists from the mainland has not reached pre-pandemic levels, consumption is sluggish, and spending money is “flowing” to the mainland. economic recovery The anemia rate, which was at its lowest in 2022, fell to 3.2% last year.
Due to the closure of restaurants and stores, the governmentnight vibes hong kong” We will carry out a campaign to stimulate local consumption. However, this downward trend is likely to continue until or unless Hong Kong’s restaurants and retail services catch up with Greater Bay Area standards for value and service quality.
In case all the blame lies with service providers, it is worth saying that macroeconomic forces play a large role in the downward trend.strong hong kong dollar, Pegged to the US dollar, the city is incredibly expensive for Japanese, Korean, and mainland travelers.
Given the strength of our currency, Hong Kong’s value should be devalued. However, the fact that wages remain high, caused more by labor shortages than by rising prices, is making deflation difficult for Hong Kong. Even though commercial rents are down, the city’s high wages and real estate values make it nearly impossible to compete on price.
The northbound trend is expected to further increase as connectivity with the mainland improves as part of infrastructure development. big city of the north The project is an ambitious plan to develop Hong Kong’s northern district into a technology hub that can accommodate 2.5 million people. More Hong Kongers may then choose to live on the mainland, commute to work in Hong Kong every day, or work in other cities on the mainland.
The fundamental problem with developing the Greater Bay Area is that the Greater Bay Area is far from a single market, even though integration is one of the objectives of the 2017 Framework Agreement.
“Bottom”one country, two systemsThere is no free movement of people, goods, services and data between the mainland and Hong Kong. With separate customs and immigration areas, both countries have introduced regulations that make market integration a slow and difficult process.
In the short term, Hong Kong will need to overcome the asymmetry in movement and spending by asking central authorities to allow and approve visits by residents of remote cities on the mainland. Multiple visit permission and, Tax exemption allowance For mainland residents returning from Hong Kong.
Medical professionals from the Greater Bay Area Healthcare Talent Visiting Program arrive at West Kowloon Station in Hong Kong on April 17, 2023. Photo: Jelly Tse
In the long term, the government needs to develop a strategy for mainland cities and Hong Kong to complement each other. Authorities must figure out how to make up for the shortfall by leveraging the rich resources that mainland cities offer.
With more and more Hong Kongers choosing to live in cities near the mainland, why can’t we build residential care facilities in those cities?Cross-border transportation has become much more convenient.After all, our Residential care home It relies heavily on importing workers from Guangdong Province and Guangxi Zhuang Autonomous Region.
Instead of spending billions of dollars clearing small plots of land, why not buy readily available quality housing in nearby cities on the mainland, giving people living in northern areas more options? . Now is your chance to buy cheaply.
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How Hong Kong’s housing market became the most affordable in the world
How Hong Kong’s housing market became the most affordable in the world
It should also gradually remove obstacles for mainland professionals to work in Hong Kong, and take stronger measures to attract more talent and import more labor from the mainland.
Only by leveraging the mainland’s resources and combining our strengths with theirs can we turn the Greater Bay Area’s integration process into a win-win equation. The government should transform Hong Kong into a metropolis like London or New York and disperse some of its population to nearby suburbs.
The diaspora to mainland Hong Kong will further increase Hong Kong’s influence, while at the same time relieving cost of living pressures in the city. Governments need to think outside the box and act quickly.
Regina Ip Lau Suk-yee is the convener of the Executive Council and a member and leader of the New People’s Party
